PING - Earnings call transcript Q4 2020 | Ping Identity Holding Corp

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ping Identity Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, David Banks, VP of Investor Relations. Thank you. ahead. go Please

David Banks

provide joining Identity for results and to XXXX. XXXX welcome the quarter the Thanks, full and call, us where Ping year and year full conference quarter our outlook we the for fourth first everyone, and today, our will for discuss

Before financial a shortly announcing press the we our to results. closed market fourth that I'd you like XXXX release today, begin, quarter remind after we issued

We accompany a this also supplemental to published presentation slide call.

Securities would release Exchange press of statements. a the that to the Today's You XXXX, presentation company's to today on actual Andre report during you section access will may include the non-GAAP measures CEO; Please factors CFO. Relations Investor could from and with our XX, annual Ping filed materially also will call, Dani, I differ for related pingidentity.com. Identity's we is on There and these forward-looking cause the performance. to call see that Commission. statements. may like results our the discuss of me the Form With some refer December and discussion year you Durand, our XX-K remind Raj ending to

that measures You questions as call press possible measures and I'll can Andre. out please address turn over many with a that, analysts' a release. your can you as follow-up. ask to limit one reconciliation plus the fourth To annual during financial the those call, find nearest GAAP quarter our questions comparable of And in statements, ensure to to we we the

Andre Durand

of flow. welcome promise to are doing having toward in report, we tuned we're to We a of quickly. who's We built. strong with can closed XXXX. things in all and the quarter We others, our XXXX uncertainty, business to We who extreme of totals. of of was to I'm finished the revenue well up on XX% excited annual a both do amidst The takeaways closed from thanks cash get also millions cash revenue everyone $X.X our the heartfelt $XX of extend COVID. year, recurring the and normal ARR back With free you everyone of million, representing key and like flow, and adjusting there. extended of welcome year to year living further full-year with the Texas-based challenging outages unlevered and quarter was like appreciate XX% evidence metric of revenue hope related XXXX. power and a improvement pleased and David growth subscription revenue full fiscal year both profitable few days gauge difficulty million emerge. model Thanks, key billion million I'd cold $XX.X and and year-over-year like the we've the reflecting the to free the you with health hope another associates to $XXX.X today. million. $XXX.X unlevered In QX for

about talked recognized has at model paradigm partner First, given prospect is are nearly to era. customer way heart security in COVID core. evolve Zero years conversation, old for Trust. to every to of their Trust the finally now plans And is norm. the home Zero of security we've is In and laying from security, Identity network enterprises now solidly accelerated the something been the Identity the as which Work with

legacy are cloud in second our transformation Companies important accelerate hybrid and cloud, The a secure continue digital is Identity which user while a to and cyber work all better invest end, all passwordless initiatives, experience. to the integrate delivering to include faster desire adversaries IT we in user trend experiences more want across consume This both frictionless intelligence, and platform, through relentless. as is to modernization. easier this our business to making identity

these clear impact and in fortunate of the continues breach. feel We the did care attacks to services. way. SolarWinds we not it's and that But security exhibited products terms recent bar environment with the in As build rise deliver by that which in those any our corporate

gold we So ensure secure we deliver to solutions. invest to continue highly in highly Identity scalable the mission critical, standard and

home, pervasiveness Given we're core the on the from four focused digital desire to and business of work cloud initiatives, acceleration themes. support

enterprise. cloud platform First, focused very the delivering we're hybrid for on unified best the

on for Your and demand Ping, their heard As are cloud cloud, these the fulfilling offers And cloud. enterprises applications. call they choose a consume where and cloud. one cloud journey, complete set for two Ping flexibility who own consume Cloud such IBM cloud across to deployed enterprises of public have with maximize services, Ping we Ping enterprises in I requirements banking requirements. reach recently provides the customers unparalleled Identity to private resiliency. these of of and the all enterprises both hybrid We're their they and an Only cloud IT customer embark them integrations Way. to where legacy clouds cloud public meeting Irrespective of can private identity their thinks

focused we're level that's amongst performance our providing identity unique Second, scalability identity on a customer of solution, and providers.

is per protect XX,XXX some a of volumes peak transactions and scale with our our second, in trusted achieving unique, statistic. staggering accounts, of performance billions also we're customers over of While our

that moment their a recognition from result, compromising recent Gartner. talk More entire trusted I that ease authentication, in properties. a And as being level our without about Consumers directory security. to we're the personalization enable to unified look the to across expect companies enables addition also increasingly the when of Ping of on In enterprises' experiences. use user profiles these digital in for central

our the Ping on through Analyst self-service costly teams for we're platform. make these estimates application hundreds and has centralized to annual of systems. focused billion these identity companies suggest with Having migrate legacy. billion capabilities legacy Ping helping migrations off is $X easier on company's spend rapidly between there invested Third, enterprises, of allow that integrate $X projects completed to less to

and we're our network, expanding vital customer to core partner our which and is operations briefing success. to our Finally,

Ping collaborate the channel go through enterprise as both who our of alongside deployment the to Our clients, and environments, process. partners and in expansive partners and complex partner expertise well in network integration Ping selecting provide as our live invaluable consists who most technology IT

I'd Now, and like few of our to switch gears wins. highlight customer QX a

the wins new On competitive we customer several notable Europe. front, had in

single signed provider, self-service Germany directory app create private The The a Ping's and largest Deutsche for all business single hybrid to to first on which Europe's deal customers. as of a in-house incorporates those customers capabilities, boarding product. Identity multi-year customer Telekom, for and multi-factor was a their ID authentication, in solution telecommunications sign-on, replacement single a identity providing their

to replace television to capabilities, additional to service mobile selected our the was SaaS growing to the smart system Ping's a as are advertisements their telecommunications offering manufacturer system through one reinvent Ping long delivered of this a Internet of risk upside Three to and SaaS leading verification. In Identity and and suite SaaS identity identity customers. notable and legacy While way services modern Ireland's win, solution to layer we such see Closer Ireland, deliver complete providers, home, TVs. another services leading experience a replace term legacy including in win, chose

new to provider innovative high-dollar impacts while have And was desire and SaaS customer multi-million into another create XXXX, of their experiences that had system. consumer identity authentication a providing new needed win value-added an flexibility experiences. their healthcare win, the and to Ping to Ping. year. immediate attention. this the them will hybrid for now they renewals opted for to a their security sizable experience had entertainment customers providers provider entire would We're reach coming legacy in demand another number a customer of dollar with landscape. In unified had selected and services, single royalty legacy due would related mobile the authentication for it directory their subscription They These expand across help for fast platform integrated on into required digital This for solutions partners. expand solution user of IT This part video services. scale, As Ping and to management services multinational allow food healthcare budget their leading based service yet concerns that providers,

COVID this airlines Finally, X, homegrown replace workforce, With selected customer directory their PingAccess a on Ping impact indicative to but cover then COVID a significant planned the replacing they to largest for implementation In access we customers, global cost-effective modernize they their seen SiteMinder replace their have expanded of of applications. to very IAM with services. to SiteMinder They having airline directory This more Phase what one of enable In needed system. to type Ping all customer and Phase Oracle solutions replace had business. the to to of Oracle. X, only through secure not the industry, multi-phased is their to the period. deployed

activity, the to as have great particularly been recognized to addition one the Gartner. performers top In by of customer QX honored we're

platform and adoption SaaS moving and into and that in competitors, Management. our critical internal one believe With services cases, of Risk end, total I'm with services provide half without PingOne of the providers both Management. a for services some of right Ping Risk phone PingOne SaaS team. I'm technology to MFA I'm all strong leverage addressable including Access IV cash provides our to on report in released Board offerings, prior MFA, PingOne addition an facial consumer use in accelerates, this now a detects validation and With have and chief week ARR, authentication. overall to Hall boardroom positions one Garrison will second January, ranked The in experience, with of stickier ShoCard leveraged be multiples I'm in SaaS of international ARR Ping growing join has widely to the in XXXX many a as None enterprises pleased great that service and deliver fast PingOne of XX And served that the including from cases. announced and Ping's through so as HR of also threats as acumen the join has Human authentication business In for Customer and and document revenue PingOne longer Board. capabilities to ARR, served identities. we announce was and won an cases. detail than how our intend impact technology the of in and our external Paul workforce Chief at customers acquired and the and in as people cases responsible global security to ARR of at use case. Management redefined recognized of we Human Paul has Identity new least growing She Ahead Ping Earlier, is of the have ARR. retired she We assessed and Ping's up ever, in accolades. technology Quadrant us. the the and the in be Officer, that government SaaS over of of the we identity them too a would of Such new to accolades for Diane possible use transformation IBM, term inception, faster PingOne visionary to IT, next customer right case in to announce their their makes we the PingOne we've IT pleased of use fashion. percentage will report to faster their award-winning savvy Verify cloud fraud. Martin our Verify Investor Famer profession forward authentication She XX% will respect and customer metrics, the interacting targets report now is is has to Verify. this cloud to Magic workforce Day era. reduce Identity larger customers capabilities Officer use range blend the ensure for members. quarters. several growing more Resource or number Resources workforce. more log-in as going with Access IBM's Gartner XXXX flow where accomplishments registering the recent frictionless recent that our culture workforce a to two we've spotlight enrolling user the To at recently Paul month, the pleased customer metric verify and exceeding use offerings. to on use If ultimately us quarters high in our well ended IT added and other pleased a who with Access SaaS Chief it digital Since been recognition PingOne solutions is a Identity for and the partner incredible With case. CIO customer, year. our than easy Board. leader. and the strong expertise half services. greater market addition are real-time earlier This it's Dianne of for a And real strengthen

from amount We Ping received Dave want in his as And are to customers than have for acclaimed to Employees XXXX and individuals as we life. him through to been Packer. closing by Board. XXXX pandemic that, to recognizing results steady thrilled years business, the our he my several the era. call I'll challenges into of team. introduced Raj hand, uncertainty exciting more to this June. None our to have in and retire next for to push the these his along would through past been Sales Head team of the to on possible our our big over best quarter of future. Ping the are end for the the of without of congratulations and while Ping join and thank part I'm has Dave COVID for his with the serve intent has to and guiding a phase our walk sales has over both the Ping And turn Raj? We the honored our our Glassdoor for certain And I the In invest I for of of be them topic these on honoring Award, moves the the best announced at contributions gratitude, has success want people, they ever now in as times place wish him pass outlook employees. years to detail. and a Dave Choice work of our harder the to

Raj Dani

quick solutions, their our would Thanks, driven our outcome. our deployments growth large our Andre. XX% and the XXXX great the compared are fiscal to We with echo results ARR midpoint seamless of year of $XX.X million ARR with to by representing closed SaaS in in net I EMEA time other of execution transformations. that drive adoption solid $XXX.X ability was continued very enabling Andre's year and that especially of QX XX%. up to comments a for we with international of customers. pleased and guidance, million, Growth QX accelerate are year-over-year and digital bookings, was our customer transactions businesses value

byproduct. XXXX. end ARR total higher represents at Day intend Investor more quarter SaaS ASC granularity We Ping of was much more these an total ARR subscription customer which of of the in accounting million, a in leverage now adoption to on year. just our contract This the ARR Andre our of As ratable so was one-third now with up and others driven This least revenue level later of revenue acceleration provide mentioned, capability XXX, of license customers at overall and of our the durations. by revenue. one term cloud shorter than related rapid at than natural points more multiples growing was the rate metrics the our half growth subscription to $XX.X XX% SaaS and a from at Fourth XX% to

XX% one-year business. license the term up subscription percentage in QX revenue Also the QX multi-year our year. total evidence the to based revenue QX, by license and and for in revenue in XX revenue ratable subscription the category, from year. full $XX.X SaaS our revenue, grew are the and XX% support These million. term of subscription our support maintenance maintenance prior based $XX.X and points acceleration of while our metrics of quarter XX% to continued within SaaS grew our represented Our and XX% SaaS million, declined XX% In

the contract the our ARR was impact growth trailing basis. retention rate a GAAP duration we In net mix Given subscription business. to on metric XX-month dollar that is deployment the continue XXX%, and based revenue, key believe QX, on calculated have of

cohort in from $XXX,XXX Customers ARR margin growth business to model, in cohorts I to from supports number XXX insurance the quarter non-GAAP for the end the of at phase XX% customers, growth. ARR more resulting their by with existing migrated Given the metrics of Unless customer largest, of million XXXX slightly The release. muted This a historically count uncertainty of drop with a appeal smaller year-over-year. overall growth. refer deal was consistently stated enterprise continue most XXXX our P&L, purchases below into was economic ARR. prevailing default. up tracked driven GAAP rate customers up by of which in for and strength reduction of data fourth quite We based ARR X% was customers the who $X year had number comparatively upwards growth at to belies a We $X otherwise specific retention COVID-XX, rate. non-regrettable margin XX%. end the of and hybrid in Gross a our the which million our This complex dollar continues solutions, in ended than with of in the press our our enterprises, number XX%. sizes in has to net XX% retention categories in customers rate XX more by including the will with category. remainder the subscription year, are this Net than gross

to the Unlevered result, lower the better of million $X.X gross full during quarter remain $XX SaaS due million down hand, subscription a expenses rate only of cash of we million XXXX. revolver, month, cash Symphonic. Recall fourth a at driven Earlier with full on at from cash this million. by acquisition million was We saw risk primarily the was the holding our million cash of the Total derisk $XXX free quarter, with approximately has year we the strong paid position cash year $X.X leaving $XX smaller available. drew and margins. the XXXX cash collections. operating flow We in than expected, associated down in passed our the as of of million in slightly pandemic the largely are financial our sheet. to were year revolver primarily feel March and up balance the COVID. $XX outset usage for drawn of at the $XX.X reduction, of $XXX Unlevered a business amount end generation a the of Our free comfortable that overall the million million, on we business strong $XXX

Moving guidance. now to

of We year. guidance are annual it last having May our reinstating in suspended after

between of For ARR growth XXXX, we midpoint, and the levels. XX% project stabilizing $XXX.X to million, at current be $XXX.X million at

expected the $XXX to growth range million, second We in We and also for million impact $XXX expect to typical to be For full ongoing the be for we quarter, on of about quarters we million million, In acceleration of quarterly third expect GAAP impacted in by to renewing first range quarter, the revenue. X% is $XXX about revenue XX% a of million are $XX.X uptick midpoint. with the QX. and currently similar $X million growth SaaS of to guiding and million expect to full-year $XX revenue seasonal a a our This project ARR. $XX.X reflective new million. midpoint the and $XXX the at first of year ARR at

to $XX payments. in million cash for the $X the unlevered at $XX to performance. year flow at up be Similar midpoint, to approximately free our QX to last of XXXX expect timing free unlevered to expect relative our $XX of to the slightly collections higher we and million, year, We cash flow million due materially million

investments expect of reflective We investments. our second cash resume revenue, them XXXX COVID, half will in accelerating investing to Our given continue XXXX. These and a middle investments of the R&D, as generation in drive is higher of and SaaS of in XXXX the paused cost free acceleration. in result non-critical

We the our of a continue later also travel to expect investments year. resumption in go-to-market and expect

we also track known encouraged our especially with this cash XXXX. to of innovation the total We We drive these move is inception, invest products. we our for, will expense as which growth, ARR as free believe expect flow growth result reflected been in we've accelerate into investments, feel a deeper since unlevered to as guidance. SaaS our our growth We year

that for it that, With We as forward and on you reporting have turn your to to look the operator plan to execute I'll the financial strength it questions. year over to the progresses.

Operator

Markets. question first comes from Your Capital Instructions] from Hedberg RBC Matt [Operator

Matthew Swanson

little SaaS Thank Yes. bit on touch helpful. into guidance. will line mix of Raj. the be quarter. expectations you. embedded Could the on which the Swanson Matt This is of impact is on is mix that if on in then Matt, any breakout for you your for And having top Obviously what more your a there granularity revenue, the kind

Raj Dani

Sure.

in anticipated. variable our But highly had to deployment -- revenue originally what software. into durations certainly than contract SaaS actually So some GAAP hybrid anticipated acceleration. we on mix our the more we going And saw is model, we QX, and due in

actual QX. saw for in the So of some that you

durations, We also software -- deals. contract the of throughout related that's on some saw shortening year and

and -- around by and are COVID. overall budget those driven uncertainty So largely

But if our essentially, this, confluence XX% actuals. about that's drove you in and delta grew what our of ratable So sort offsetting guidance think two the of factors those revenue between QX. the year-over-year the

contract kind growth just base. it's just of GAAP for an metric mix for as created to by normalizes noise ARR relevant us deployment all revenue, important while So the a summarize not and metric, it's our

Matthew Swanson

then move the a to of kind perspective through replacement about And the start start here. kind good Oracle replacing vaccine you're some when insight. we pipeline been airline see again, up to you open starting of to legacy Andre, the like it's that hear of helpful Are some opportunity as to least deal really period super That's systems. at

Andre Durand

back legacy an indoor, opening of Matt, the by and and legacy. ultimately replace driven it that into to that time in plan the up. they replacement is companies renewal all applications of the lot to our are integrate need times amount A is convert

so renewals legacy we the introduced into for account. as get And the up, come

an I even this foundation of that distributed in the that now think that there All increased of level security said, more of is do world. is awareness Identity

so the I on the to an there experience but is view choosing And the Zero role displace solid to they go legacy, not of think to they the actually customer of put partner business footing that and elevated workforce for in need now where more just they Identity and they in role strategic that with are the Trust where go know securing want a and of world.

Matthew Swanson

Thank both. you,

Andre Durand

Matt. you, Thank

Operator

comes question next Kalia Saket from Barclays. Your from

Saket Kalia

how guys, given that to SaaS, just is for about feel to here. we're you, maybe do cloud against you you solution cloud it shift taking first solution traditional question more and the -- maybe cloud, perhaps Ping how native competes thanks my questions solution feel you Andre, about seeing do the on-prem cloud that Hey how sense? for Does Ping make your SaaS relatedly, the feel do solution other competitors? Ping like

Andre Durand

Yes, Thank for question. that Saket. makes sense, you

for offering more cloud in have Ping the to architectures. reported private one pure level largest, in or most Your I the companies in for cloud a clouds this I've is now, before, very unique I as Way of a cloud. Cloud and public certain deploy wanting one continue, fairly built our my their ability now deploying earnings strong enterprises we have As to this the a in refer We hundreds first we think have regulated SaaS, on but mandate recent reported And most control. customers that as Ping script. want and of will or But

scenario. Our developments, I'm the seen is solution. the three greater as mission has than very And and most the to companies by deploying the world's our to now parity represents compromise, is ARR releases, also services a multiples a referring environments. we've accelerated in growing excited pace SaaS also noted at of our good as been press good no of in for critical you're traction we've what our our we as our Perhaps software overall to ARR, have you've of overall refer seeing SaaS of years what we're for ARR. and about, the SaaS early new introducing and in three quarters now This which introduction. in offerings from recent offering capabilities, seeing really companies feature are SaaS advanced consume all that with we the ability traction best XXX% And in XX%

been most offer as investing having services in capabilities, now our to cloud SaaS ability platform So we've cloud, and our the in making advanced our competitive. aggressively and very is us

Saket Kalia

previously little Got multi-year duration I bit may perhaps the specific you renewal durations those deployment if I'm a renew of perhaps that term it. little of for follow-up a for decrease you. on pipeline those bit renewals bit, for curious you little really broadly, changed renewals, know being in of talk SaaS. and shorter this my about say just durations. premise, some lower were on Raj, renewals, but talked the That's maybe be maybe a multi-year quarter. those helpful. to renewals about you Can Maybe related some that, did

Raj Dani

Saket. Hey, question. Thanks for the

a as saw top with, wouldn't perhaps because on over some significant software in overly I amount of quarter. just of and pleased but for significant QX say SaaS new that's as typically more we renewals, mind, we for a ARR to it And question that second did renewal usual. your call significant XXXX the we retention answer had QX, -- acceleration customers So amount typical booked great QX, we had I'm had volume first, SaaS see we to of of in to in the

when renew sense. to -- renewals for multiple deals of all kind to to your it if pipeline years, There first. wanted right, confluence is first especially renewals. different So and multi-year on there's of just that multi-year makes factors, I question initial of And a durations. that comes back then, revenue of that impact all Not renewals, is address question typically going just there the second

really in But I and was note we and durations. a your that there to that Specific question according much contract shortening as where you're nothing of And of see multi-year on some bunch so slated think of schedule. I that of think whole renewal degree we had tracked higher QX, our some of renewals, SaaS, you're asking. mentioned in seeing came shorter, pretty did to I they

Saket Kalia

guys. helpful. Very it. Got Thanks

Andre Durand

Sure, Saket.

Operator

Raymond next James. question comes from from Your Adam Tindle

Adam Tindle

if Okay, ARR non-SaaS seems thanks, but of on becoming at to probably you're for XX% this should just is if coming it's total how, helpful as about the ARR cannibalization or SaaS Curious a mix. this whether push well, the is to touch up or it wanted the good afternoon. point. it'd some ARR aspect net there of of shift continue, comment rates part new because good cannibalistic I bigger of this from as to that poised over understand because be is additive growth seeing valuation

Raj Dani

SaaS Adam, it and new is related growth obviously most and SaaS our of our to and everything offering. SaaS

do, noted, we journey the an significant as they some our anticipate what Day opportunity over for year. half customers to As of cloud to will will second up see cloud, sell Investor that if our in be that's this into our move offering. that customers We do of they we time wish do discussed in our we the

as offered run on-prem. several the available that have to software services as We cloud not them SaaS for in are

for journey, do seeing expansion. cloud platform, in So But most their as our opportunity cloud into is of see move make you're the new. what commitment to customers we Ping

Adam Tindle

actually of of this ARR, double-digit helpful. follow-up It on based key new bottoming this that million new any low growth the embedded a that's should in year-over-year Thank the the are ARR whether $XX.X out new on you on your metric as quarter, it's versus or what's existing looks was touch Raj, maybe course the color improvement assumptions source of just drivers declines a Maybe like that? upside. year. year-over-year And over see and And can Okay, guidance. embedded customers give you. in additional

Raj Dani

specifically? for Thanks, Are you Adam. about talking XXXX

Adam Tindle

Yes.

think decline QX, I $XX.X we so For going And is digits. double it and bottoming low XXXX, was improving. at look if The XXXX, out it's to grow year-over-year million.

the embedded trajectory and in that Just assumption? curious ARR on what's new

Raj Dani

Sure.

mix overall of to of to stable basis about new. steadily fairly base growth ARR within and a XXX had our And tracks typically points. net versus we -- our we've XXX pretty retention So sort

really making traction. whole and with two-thirds view as their lot. pretty can is we that investments new We're our in which and encouraged our a continue early and base growth of in changing of a don't anticipate in channel we the as lot We a So that trend. -- want we're that shown mix healthy kind team, versus

Adam Tindle

XXXX. Got color good for luck the and in it. Thanks

Raj Dani

Sure.

Andre Durand

Adam. Thanks,

Operator

from Sachs. Your next question from comes Brian Essex Goldman

Brian Essex

more you if buying their I question. with previous good terms is that you deal patterns. little still pipeline you maybe with and XXXX that how of assumptions you changing And thank in we and around being maybe reconcile customer kind around there? can the afternoon a for buying customers could what with is patterns, outlook, in phased. -- taking wondering at as was And and I expect -- I and your Hi, to periods, you're buying maybe bit your start seeing of normal we what's for color return intentions. at know of speak all said can a the Maybe embedded you've in what look mean,

Andre Durand

this Yes. Brian, speaking. is Thanks, Andre

a refer hold seen lockdown activity COVID. have enterprise savings we and what focus but absolutely up. as Budgets picked do through in cost to and remain a We RFP the has

so pipeline now phasing and to healthy clear, volume To are will to continue this be we deal a do incur anticipate occur. generation. we experiencing And

experienced out I the pre-COVID. we're we So think what entirely of from don't woods

which to are and stabilizing first that with the environment. we feel in a things normal really more solid of However, QX, of the starting sign beat some is ARR saw

guide some what experience So, and is We seeing are anticipate guidance. we our pressures and we and leave what in what think to that we see are we conservatism does still and we I those. budgeting do embedding in cost

Brian Essex

would about normally Maybe might factors deal think purchase. may in how phasing the to in XXXX the they company they're you see right-size lead to might them that reconsider and that that what rate a these phasing deals,

Andre Durand

systems. authentication focus embark example think the the tends do those fruit land different we've to or of retire several for strong in seen or authentication past the directory two as -- identities looking have hard MFA, land, customer. services companies very common on consolidate workforce or or typical to and my about are for customer, information their customers for identity directories. are on They They're their my multiple their I multiple looking workforce it or in to in tokens Begin for is typical centralizing I MFA that either of all early to the for are authentication in be one That the examples three for be remarks, in that identity. low-hanging modernizing gave Well, either in to very

information unify PingDirectory. consolidate customer a around in profile instance Let's and single of that

then, retiring access Access times be IBM legacy of tend will project. to Oracle of project that we a Manager and So SiteMinder management reported see that also many Access Manager. we've and a And the web

of and All support to little standards. new they not are those are the adhering identity all of many and their hard PingAccess our to look They've for us to along long the deals become platform and to products product. of around open tooth of Very those a common modernize modernization the consolidation see -- that dimensions. and entire of three in phasing the their

Brian Essex

That's it. you. Thank helpful. Got

Operator

Your from next Gray question from Powell comes BTIG.

Gray Powell

thanks. Thanks question. for Great, Yes. the taking

of last off your growth that the how and speaking, delayed the So did a activity the just roughly ARR much into then like maybe those deals about think XXXX. were deal as coming fold. should prior back environment how macro of up phasing And impact of in kind pace just question, following on the year, starting recovery we

Andre Durand

we the the largely where said, experience prior to where an phasing I've to also experienced see what did really definitely as won't have actual and impact COVID attributable as guidance to to not as we've We a behavior of which change buying deals, we until reported, guidance had return going occurring. we we of things look is forward, changed, and not phasing

have did it So in an impact XXXX.

impact philosophy to us. of foreseeable and in you the that we and front see is that kind see experience That future of in our projecting to guide are what embedded our into guidance. We

as early are and a I've pipeline QX early signs to is QX is indications little this in projects returning, entering were in year. We active, XXXX pent-up -- seeing encouraging. demand the There too of this on to some the also of are call reported call here in that hold as of are It evidence RFPs. normal, but put now more

Gray Powell

kind relative And That's in just okay. talked different identity really prepared topic, how helpful. remarks, opportunity versus are about then the of customer XXXX. growth the but you workforce it, identity and about Got totally thinking you this in the

Andre Durand

couple into part better the leading the years. for customer use case last of now been We've of the

it on larger performance, our ARR now, our is Turns use both privacy of reported than is security the we've the regulation. overall a piece really of faster case. and scale out across also growing it strong and growing dimension As snowball workforce is and but solution

strong around We all scrutiny ensuring product a of actually are privacy, that very requirements. regulatory that those of that allows have under enforce companies that support their infrastructure portfolio they consent can

So It segment it we is very but workforce product. differentiated growing a have than ultimately and is larger of faster we the a will market. smaller believe become

Gray Powell

Thank Understood. you very much.

Andre Durand

you. Thank

Operator

Blair. Ho Jonathan William Your from from next question comes

Jonathan Ho

bulk or to be with where investments? to these going maybe you just I give to where and accelerate your for a of opportunity making you're of you investments sense XXXX. the may see either more be Can catch Hi, an good start wanted afternoon. to up comment us

Raj Dani

Yes, absolutely. Raj. Jonathan, this is

about So unique few This really over lot able making you've last -- out seen an We're there. really acceleration. investments where we we've and as to quarters, some our about roll talked products some SaaS that. is really been been unique excited we've area a have the

really as as in And growth. will our good at mentioned, lean there. to SaaS initiatives. mind say, the but around the SaaS for onset In reps, growth now investment Actually, as ARR continue for lean back OpEx quota-carrying us. and so engineering excited XXXX, and keep investments with especially R&D year, the will that overall, that will opportunity returning of ahead visibility, an second the in impact of a we'll and -- cost as and COVID we Those into mentioned, we adoption we're I half as about of perspective, XXXX we're we revenue primarily, investments to paused And then I portion continue going of I'd overall support we of R&D leaning track channel, trend. hosting last back and start into we started like into growth just overall the to that we costs to in from

Jonathan Ho

that you maybe looking what changes about either search side or Thank and little it. can bit cost you. on a of continue the Got the talk doing investment for you And about some you're sort executive around if of you with think can areas sales things, basis. leadership of things process improvement the

Andre Durand

Jonathan, our his leaders contributed has We're Each one Company at an our thankful critical through built our to during is at Dave us. noted, of He the Ping. years incredible success those several in And more for of of last success. we've many growth. great years. than been team. as fortunate different the have doubled them everything tenure to Dave for to been leaders stages you

an have team. We incredible underway the have through active transition. do We an search will and Dave stay

any that chapter what's question there don't another of All Jonathan, the him piece to And on -- his excited missed, right; frankly. disruption to there next apology. sorry. of my --- I We're expect So, I cheer career. that was

Jonathan Ho

characteristics of for what you looking sales as new just sort a for well. asking I was in leader were

Andre Durand

Yes.

what I the are and So the large projects, have look insight and thing is implementers and doing. to important GSIs becoming think When companies, penetrate us. to the case. both Global if enterprises these the you that XXXX in is Many are of looking ways channel we identity to both of workforce increasingly firms, security the and many at those Fortune the the we're advisory forward enter there to look -- these into the visibility customer use the XXXX,

the both implementation as the after provide we to the and are effort advisory partner So, channel a concerted as upfront, deployment to well making services fact. with services very the

strengths strength services. will So, and I in we that look in provide particular advisory that GSI and companies for think in do the the channel

Jonathan Ho

Great, thank you.

Operator

Your from comes next Credit question Zelnick Suisse. Brad from

Brad Zelnick

think leadership, going I'm so And them flavors in is thanks differently. two back plans maybe because or I that asked getting to in as to the touch to It's quarter some questions we consequences Jonathan are Why a head this he and a just should is little of capacity ask. wanted transition to count much if about and me. and just actually how we of there sales this bit telepathic turned transition? change or two overall the more come risk salespeople Excellent, unexpected at over more not that going for Maybe find on on sales Ho point?

Andre Durand

lot We have of here, a Brad. great leaders

a have great lot here. sales people We of

that investments that there made we've investments now. right the recognizes force new is our cloud our I activity of and we've a as in companies And in said, made capabilities. sales the lot think the I product, in offering,

kind certain So of the things we of trust COVID-era. as emerge. not begin, a are But amount do if with lived things activity through feel behind the I beginning think us. I it's entirely to

after leaderships our this think own. look very, built view after more strong at that culture very for here We at with employees. look point the to I also a if we've I have subtle of Ping, look you and out culture. we our role do

growth think opportunity. has both caring leadership I their our and rewarded success we for and recognized towards the employees and that by are that

anticipate that this would disrupt major So, I changes any year. don't

become You first larger, here more we've Ping. going to we This not what change that employees but we've is happen, put first as is become and never the at know resilient. navigated we've

Brad Zelnick

field? it. head count in on update Got And the capacity in just plans, any

Raj Dani

take that. mean, I can I Brad.

are the up -- on I support those. about our plan. quota-carrying areas and short to to down we we're have year feel the reps we've over outperforming, We last the invested that good capacity. we double answer so is, to in levels which the And need think the or going gotten

around so And the it's for the most part that some may baked. around plan, tweaks we edges we'll have but --

Brad Zelnick

but you I'll also bit question a investing. Ho's question my hope in which count I which other he Jonathan terms you're of little second maybe to ask my differently. won't as and Raj And in asked follow-up Okay. that areas

natural growth remarks or business? is, when easier Your guess comments this with easier growth we which in is growth comps, see especially question and do in the outlook should acceleration your the track growth ARR subscription the I steady prepared leverage, in that is for against expense of and an type

Raj Dani

XXXX Right. Brad, was investments, the big gotcha depositing of in the right. these

right, result XXXX a six-month about the into in investments So is XXXX. push, of what XXXX you're seeing of

critical channel Now hired leader. We we the our make leader. a hired continue EMEA We investments. to new

reps all We needed that quota-carrying invested in critical we to. the have

it immediate that is don't So that, later made see year investments the leverage. you impact those full of in we year, just confident that part But in model. we're the which of is why the

If you tremendous operating leverage go back in years, this you've a couple model. of seen

growth road hopefully profitable We for continue the to reason that think return in a on just model, to in had COVID our that. the won't It's we even this we had to deliver year. COVID bump that especially we though behind there no a and think is we later most that's now and -- us, part

Brad Zelnick

the much thank you questions. Alright, for too. also taking so I

Raj Dani

Sure, Brad.

Andre Durand

Fred. Thanks,

Operator

Moskowitz from Your next Gregg comes from question Mizuho.

Gregg Moskowitz

off, guess, line thus you thank think much customer know very for had pipeline on to guys Andre, straight always your solar conversations, first impact, what storm question, just I your a any, based if on you has wondering the I'm far. taking easy but draw right, it's I not All

Andre Durand

environment or Well, we in I'll SolarWinds, participate corporate believe the near products did in saying we fortunate AK to not way. vulnerability that privileged tailwind MFA. I start the our that, any don't term impact as attacks by are management, access as a both Sunburst, is well

going to and Zero only the at related attack people long term security kind I SolarWinds to tailwind shore of they near password is believe look to weak be So the those to links. and a of Trust. looking term, up all vulnerabilities identity-based things are

the years strongly in has be invested control our where of the in on centerpiece is trusted As devices, users, at strongly to new the coming authenticated will identity authorized the for of Ping plane. is forefront know platform you users,

the posture I short-term a lot and believe, have vulnerability. Pam So MFA be that. I to believe have moves. had is and long And Short term, assessing is term about just their customers of certainly I of being a going tailwind. conversations busy Short the been companies with of lot a

attention choice they of infrastructure to their saying to of chain that most really supply their are just in think them I need and now the to partners. pay

Gregg Moskowitz

makes There sense. secondly, COVID while have takes a been puts Okay, environment. of know Andre. you're lot security the because for also and very excited then about API XXXX And your and That economic I in and product. some have thanks. of been

kind I to has So hear how for doing that love few months? been past an product you update would just the of over

Andre Durand

foundational that and all Yes, enterprises APIs. just wholly incredibly Greg, said, businesses now It's on to future and competing all digital technology. that themselves on the it's really business it's dependent secure we've of find important as

where We a part just of are security strong very, story. story, API is API API building our one intelligence very

hit. for nascent and we now XXXX this we in firefighting PoC The I throughout emerging before, had there March leveraged As many deployments. entirety, back mean from still pipeline these behavior half I over the that last had buying enterprise of to deployments us. and strong when now pilots took was customers product circuit are pause speaking that remained and reported the and the of the of kind of and large-scale and are a companies starting say, successfully in live is those in champions and that emerging what at during the other interest time priorities Those gone underway of year. been hit have deploy several the market COVID And to the massive wide the multinationals. while

my buying low our is a the resume market we're it We're capability that. bit as that conversations it of beginning hits, furious. product. [indiscernible] time cloud want in possible. SaaS offering. to buying of on And and move time to as when ways capture to for taken a little kind make fast to in hit that also that of and the we emerging So the belief the the sure to entire much in is I are to taking behavior many front more position It going We've

Gregg Moskowitz

for forward very Thank the and to color tracking that's progress. interesting. look right, All you. obviously Thanks that

Andre Durand

Gregg. Thanks,

Operator

from question next Catharine comes from Your Trebnick Colliers Securities.

Catharine Trebnick

and some in possibility taking number around to of or deals that like deals actually give how of Could that channel. percentage for been the are question. quarters, us the my you working is influenced give a couple by last The you. us you Thank there the of details channel? you've more investing Thank more

Andre Durand

Raj, to I I sourced make influenced we either or don't sure. know business. disclosed want if

Raj Dani

hired in We the half, In and haven't, earnest. launched team we've and Catharine. new -- team. the a we she I her -- channel mean, out leader really second been and just has built we

in we'll the probably big So looking on good at it's a something forward and we the but there, year down end we're really little report feel of to like shape things line. bit

Andre Durand

I a think the by I of business, is say portion channel. can significant influenced however, our

there. deploy with new business. we a beginning We're the our And participate to and to bringing the here several employees our channel, made to strong the partners the have in -- commitments, commitment with channel partnered a this in -- our as a be to channel result. really sourced have business We we first year also We to SKO. and focus Ping, channel the way now we've both been track at desire company and close partner to the that to discover, partner -- both

Catharine Trebnick

motion. guess, little question solutions Thank right. would channel it's you a be, All you. fit the early do up follow on of I your that think which and

Andre Durand

I of had good about workforce is about I think Well, cases, business from the think channel. use activity case. If half use where we've the our

had half maybe is growing channel both use activity customer We've partner and good faster, workforce. larger the than on cases. case, other The now use slightly

capabilities Now company. with or respect or products specific a to Ping solution is services,

platform complex their and the partner large security ground activities. to a We departments essentially IT to identity up, of of strategic are from enterprises a the modernize build for all

where tend this, do Many it some or partners them vision the will, single as well are and have the of we the training they if Ping on on While is to selling consistent focus you the sign-on. we as or for are strong foundation times partner, and land, is both strong platform authentication authentication platform on broader solutions. strategic the the as

to, selling pick of We're there no company, a to So solution say the our that's endure want platform. I a and the product, is product solution one is that channel out would

are We educating.

behaving do are training way ourselves educating and to our and partners thing. We are selling we and the same that

Catharine Trebnick

All you very thank right, much.

Operator

from question from Owens next Sandler. comes Piper Your Rob

Rob Owens

my for taking thanks guys. Great, question,

that challenges of number, First that acquisition. obviously at there and little there softness think you in some the issues on acquisition I and is present new touch has from or acquisitions all, flatness, And organic X% can the we there growth, on as some churn mentioned to on there I resulted this is smaller cases customer are any [indiscernible]? going anything inorganic customer year, some really how the a was bit know customer look just within

Raj Dani

In a world that. XXXX, Rob, with slow part we net in this related large take new half a a customer as pandemic. saw was Raj. to COVID adds of first deal I'll learn and a that

The was second half stronger. much

you of So of I'd that traction stronger deals softness, logos, had business. of international healthy larger QX greater than And had our awards it XX%. was significant. up an area at the the fewer even. that ARR But with say, more much if the new mentioned, QX, in larger our the look growing adds some a rate second quarter there. Andre in than we had trend stringent given half and had was if in lockdowns the was international customers we million were saw is some dollar that the where couple they there in there the from they we were stronger

mixed bag So little there. a bit of

head. therefore expanded. time is want that of your only non-regrettable is, nail grow there and of in we -- the the hit bought They ideal one is, with product there our customers the -- still never maybe which that us. of on you and profile ago some end and a cohort some have think churn there I question long is customer At some

ARR our So, see for because newer some much them. we take products QX those SaaS of XXXX, customer they in smaller them of if some still forward fall of with do profile -- customers, TBD them going into is fall what But they most and what to not that. appeal will in say ideal our -- did SaaS or of it's our

So most of category. them are in that XXK sub

really count So opposed ARR customer more metric that's metric; as an for important. us our it's of to

Rob Owens

during to there is quarter, unique the March, I saw something or guess engage you early [indiscernible] number I And in COVID that outstanding, can back but first guess collections, you advantage in in strengthen of on and ARR it the from this Thanks. your going -- quarter just the can collections we touch special was then, perspective? quarter

Andre Durand

most with a been have customers -- especially highly terms, working companies quarter really. those Not considered. our in all things decent on collection like had impacted We industries. collections We

So between, and good we shape. were few have the really most those that those who are in we for part far where

Rob Owens

you. Thank

Andre Durand

Sure, Rob.

Operator

Liani Your comes Bank next line from your from Liani, of Tal open. question Tal is America.

Tal Liani

go. Here you

Now hear you can me.

of question and it very term the not muting easy I unmuting. down not on we the of the licenses to so call. cloud almost It's XX% have. to for the basic and of then, Is stuff, declining it continue long beauty but every the -- or -- go are are between to and it licenses you you up is the question, see A is that what's few one can is questions over it And outlook up? based new over The is and for I to Last kind there and level Sorry. beginning, have to changed, goes disclosure suddenly year? happened always want licenses, of proper appropriate down some it my always goes And solutions, XXXX What's the is because want matter. a to notes. much. on based going so term I subscription finished and it it. really suddenly look around, comps, [ph] is quarter. question end the next of starts then the going and go that outlook existed. decline term meaning probably I for XX% If I what the at you go high term that Okta Can turn year suddenly longer term based down don't year, break to actually SaaS-based doesn't the understand

Raj Dani

that. this is take Tal, So Raj. I'll

up XXXX actually had if you term licenses. In roller durations QX in the -- in coaster, in end terms will, contract single of a specifically year you based a of terms drop we but and in year. spike is a a actually what significant XXXX, the and multi-year during towards of And what happened of actual licenses saw the term-based

Now, the the that business year some of transition to of second SaaS right, keep the half mind this in SaaS part a new we because as and is and introduced of of in more SaaS, products acceleration first a the in of the lot well. into year that

term us to based So more licenses. of SaaS it would towards makes sense see mix away you and from shift that that a

that's of So it. part one

and we spike other in and a a COVID we The and amount durations to as think in durations dip a in contract of is saw saw QX, QX be that was good related, and just budget QX one in honest. -- QX we just in customer dip

Tal Liani

So to significant we still the year or is low of and SaaS migration versus the year second this a the the we a part decline continued next and of you SaaS trend or kind the that growth? there short-term, now anything because of COVID year year, see following for have without base is next total, right, model the else year because also actually the could that something and is, longer-term and my one of XXXX the trends to easy of specific decline there question, following this question should comp if long-term, is I at look

Raj Dani

in towards in we've at least based term toward a last the on key we business, a slight and ARR are shift uptick the that's of our SaaS the will healthy of expecting a a I Well, think terms been keenly XXX% subscription for is XXXX what of growth. terms health because projecting again indicator in that's we're But pretty few quarters. in you we've investing growth focused model. -- licenses, and the see over what But in We're us revenue. revenue been as introducing

it's some So pumps, may business. maybe not post-COVID our key for again, you see indicator that's but a duration something

Tal Liani

It's the is of But okay, below. it's there did quarter, point. guidance you the good Right. but it's good, revenues. and surprises good is line, for missed ARR no a not there, -- ARR guiding the and it's still kind in the metric are understand you miss numbers the I you year, revenues on for revenues it's

now that change So What before? is what on revenue revenue change the we what the side? thought lower than projection

Raj Dani

saw mix because deployment what that term prudency revenue based so the quarters On in in. have certain we're year, -- we and is in -- then other happened side not what impact baked it for had our the for also most some just through baked and a COVID. of duration we at the not last had we're durations we COVID contract side, into some part on licenses, the completely

a business. So and two. the fact really the than we as overall of of than combination about it's the greater but of the overall -- ARR acceleration our really XX% we're the -- that faster it's mix But rate excited growing now and SaaS much

Tal Liani

you. Thank it. Got

Raj Dani

Sure.

Operator

Patrick Colville Deutsche Bank. comes next Your from from question

Patrick Colville

Hey, there. question. much Thank my so you taking for

I touch wanted ARR been have on questions asked. to I just the that one would be linearity. of of, most So guess kind back

so growth XX.X% fiscal of it mistaken, quarter, trends implies improve year through the year. in throughout suggested 'XX next fiscal growth, the XX% fiscal we as quarter the the in 'XX XX% and will total, this So actually if I'm go that guidance not of first

Just why is? remind me that

Raj Dani

Patrick. -- looking us. in we about, to the right -- various we quarters, what's us to have top in bottoms QX. models we across of We're up what we all guide and talked obviously of as front we Well, front are see at for the visibility we best and down

variety guidance that's of full QX largely as So the guidance that full-year that macro, in is feeling ways the guidance. our what reflected certainly the and in well. stabilization in into we we're you We what different look year feel now a built we've at our see

Patrick Colville

Nice.

tax customer management, points Okay, three then XX-K, the up on I subsea I year. XX% revenue saw my of identity year from not management. is is just question mistaken second customer I guess is about you. am thank which the And

expectations So very of something -- couple just businesses for only qualitatively me -- kind years, it's the not thinking. -- clearly well. you're just that understand business It's kind your that over is help of next [ph] just of trending so

Andre Durand

of that -- and a very think we're I seeing I focus has that us, it would noticed by focus. a design. the for trend results been strong solution continue We've will that, you've and got that we platform expect

Patrick Colville

is principally of kind replacement DIY of from that software? homegrown And

Andre Durand

You of customer do lot DYI use into case. in a the run

Patrick Colville

sell I'm going it. to

Andre Durand

prevalent more the It's workforce use case. it case in in the been than use customer has

underneath authentication We systems, sitting example. homegrown will find directories, legacy for

use find will customer those management legacy some access You of cases. in

legacy a some is replacement, is but there So, lot there of homegrown.

Patrick Colville

time for Understood. the taking Thank answer you my question. to

Operator

Your last question Fargo. comes Wells from from Andy Chan

Phil Winslow

Hello, Phil Winslow. this is

do sort here, one have sort the thinking [ph]; speak spending what's question about how do take online -- as others? so talked the expect in Andy API your those and over communication if come do you security. back to you the of to of 'XX obviously priority of his of dynamic you're greenfield 'XX, about those, -- subsets a sort how you But you for on expansion about think I about think that name MFA strategic

Andre Durand

sure make I there fully covered that question, Phil, I think a particular... a you things. understand because few Is

Phil Winslow

Just do in just others. reopening products starts, you have it are recovery call the that the products. more of systems uptake you a perspective, scenario. you as just a think from The Thanks. customer and one we seeing before have, products

Andre Durand

SaaS and with you whereas Ping, when sign-on. our offerings. when consume for company single offering go cloud, Ping. we're is every made and Ping I that that Ping selects in expect to I we've if all deploy a Keep and think see mind what investments in back done to that Everything the company years we've customers making maybe way to easier your buy deployment and started on it our XX

and vendor. off it's rare company Now, small something carve to pretty a a for select that

cover how first platform on And we deployed strategic use tends and started application So customers to is multiple that X of for X cases most That products. provider tend solved. they a solution a can the the down of number or MFA. and get focus number of get the integrations to being knock we on on focus

answer products typically not product, include product and my And SaaS question, is is single so a acceleration your It It's online. would it's cloud in point. multiple the offerings around our say, single services. to it that that -- comes a and solutions I an not

Phil Winslow

Thanks. Got it.

Operator

turn call I will over now to the the presenters. back

Andre Durand

Thank the providing call. for best all updates as that forward progresses, earnings the you today's joining. HX want our So XXXX. concludes Day. year to in Investor I We everyone thank I look to wish including you.

Operator

Thank Ladies this today's call. concludes for and gentlemen, participating. conference you

disconnect. now may You

Ping Identity Holding (PING) 25 Feb 212020 Q4 Earnings call transcript